Your First Income Tax Return

Many students and young earners don’t know whether they need to file an income tax return, or ITR. Filing is simpler than it seems and can have benefits.

When you must file

You generally must file a return if:

• Your total income exceeds the basic exemption limit for your tax regime.
• You meet certain other conditions, such as high foreign travel spending or bank deposits above specified limits.

When you should file anyway

Even with low income, filing is useful if:

• TDS was deducted from your stipend, freelance payments or interest, and you want a refund.
• You need proof of income for loans, visas or credit cards.
• You want to carry forward losses from investments.

What you need

• PAN linked to Aadhaar.
• Bank account details, pre-validated on the tax portal.
• Form 26AS and the Annual Information Statement, showing TDS and income reported by others.
• Records of income, such as stipend letters or invoices.

Basic steps

1. Register on the income tax e-filing portal.
2. Choose the correct ITR form: salaried people and those with simple income often use the simplest form.
3. Choose the old or new tax regime.
4. Check pre-filled data and add any missing income.
5. Submit and verify the return, usually through Aadhaar OTP.

Deadlines

The usual deadline for individuals is 31 July after the end of the financial year, though it can be extended. Late filing can attract fees.

Tips

• Keep records of all income and TDS.
• Don’t ignore income from interest or freelancing.
• Ask for help from a trusted adult or tax professional if unsure.